Fairfield Connecticut Building Expert Directory

Flag on the Play! Expired Contractor’s License!

October 02, 2015 — Yas Omidi – California Construction Law Blog
It’s football season again. Which means, of course, that in addition to touch downs and field goals, you’ll also see hooting and hollering when the ref throws down a yellow flag signaling that a foul has been committed. In Judicial Council of California v. Jacob Facilities, Inc., Case Nos. A140890, A141393 (August 20, 2015), The California Court of Appeals for the First District threw down its own yellow flag under the dreaded Business and Professions Code section 7031, finding that a contractor was required to disgorge all monies received on a project – to the tune of a whopping $18 million – when its parent company allowed the subsidiary’s contractor’s license to lapse when it rebranded a new company to perform the work of the old company but never formally assigned the contract. I think someone in marketing may be in big trouble. Read the court decision
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Reprinted courtesy of Yasmeen, Omidi, Wendel Rosen Black & Dean LLP
Ms. Omidi may be contacted at yomidi@wendel.com

There Was No Housing Bubble in 2008 and There Isn’t One Now

January 17, 2022 — Ramesh Ponnuru - Bloomberg
Housing markets are red hot, with prices up more than 18% from November 2020 to November 2021. That’s an acceleration over the previous two years, which saw increases of 4% and 8% each. It’s also a faster rate than the U.S. experienced during the housing boom of the 2000s that preceded the Great Recession. That comparison is causing some heartburn. “Are we in another housing bubble?” asked Mark Zandi, chief economist at Moody’s. The consensus, shared by Zandi, is that the answer is no — or, at least, that today’s bubble is different and less dangerous than the last one. Lending standards are more strict than they were 15 years ago, for example, which ought to mean that fewer homeowners are at risk of defaulting if prices fall. Read the court decision
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Reprinted courtesy of Ramesh Ponnuru, Bloomberg

Sometimes It’s Okay to Destroy Evidence

August 17, 2011 — CDJ STAFF

The Minnesota Supreme Court has ruled in the case of Miller v. Lankow that Mr. Miller was within his rights to remediate his home, even though doing so destroyed the evidence of water intrusion.

Linda Lankow built a home in 1992. In 2001 or 2002, Lankow discovered a stucco problem at the garage which she attributed to moisture intrusion. She asked the original contractor to fix the wall. In 2003, Lankow attempted to sell her home, but the home inspection revealed fungal growth in the basement. Lankow made further repairs, including alterations to the landscaping.

In 2004, Lankow put her house on the market once again and entered into an agreement with David Miller. Miller declined to have an independent inspection, as the home had been repaired by professional contractors.

In 2005, Miller put the house on the market. A prospective buyer requested a moisture inspection. The inspection firm, Private Eye, Inc. found “significant moisture intrusion problems.”

Miller hired an attorney who sent letters to the contractors and to Lankow and her husband. Lankow’s husband, Jim Betz, an attorney, represented his wife and sent a letter to Miller’s attorney that Miller had declined an opportunity to inspect the home.

In 2007, Miller’s new attorney sent letters to all parties that Miller had decided to begin remediation work on the house. All stucco was removed. Miller then filed a lawsuit against the prior owners, the builders, and the realtors.

Two of the contractors and the prior owners moved for summary judgment on the grounds that Miller had spoliated evidence by removing the stucco. They requested that Miller’s expert reports be excluded. The district court found for the defendants and imposed sanctions on Miller.

The Minnesota Supreme court found that “a custodial party’s duty to preserve evidence is not boundless,” stating that “it may be particularly import to allow remediation in cases such as the one before us.” Their reasoning was that “remediation of the moisture intrusion problem in the home may be necessary, even essential, to address immediate health concerns.”

Given that Miller needed to remediate the problem in order to continue living there, and that he had given the other parties a “full and fair opportunity to inspect,” the court found that he was within his rights. The court reversed the judgment of the lower court and remanded it to them for review.

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Appraisers May Determine Causation

January 21, 2015 — Tred R. Eyerly – Insurance Law Hawaii
In a case of first impression, the Iowa Court of Appeals held that an appraisal may determine issues of causation. North Glenn Homeowners Association v. State Farm Fire & Cas. Co., 854 N.W. 2d 67 (Iowa Ct. App. 2014). On July 15, 2009, North Glenn Homeowners Association submitted a claim to State Farm for hail damage on the roof. The claim was paid. North Glenn did not repair all of the damage, instead deciding to use some of the money to make other repairs to the property. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Las Vegas HOA Conspiracy & Fraud Case Delayed Again

September 17, 2014 — Beverley BevenFlorez-CDJ STAFF
According to the Las Vegas Review-Journal, “[T]he federal trial of former construction company boss Leon Benzer and five others in a massive scheme to take over Las Vegas-area homeowners associations” has been delayed to February 2015 by U.S. District Judge James Mahan. Defense attorneys “argued they needed more time to review thousands of pages of new documents provided by prosecutors.” The prosecutors did not object to the delay. Benzer and the other defendants face conspiracy and fraud charges in an HOA takeover scheme that allegedly occurred between 2003 and 2009. Read the court decision
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Pollution Exclusion Prevents Coverage for Injury Caused by Insulation

March 30, 2016 — Tred R. Eyerly – Insurance Law Hawaii
In a per curiam decision, the Fifth Circuit affirmed the district court's holding that the pollution exclusion barred coverage for bodily injury caused by the insured's insulation. Evanston Ins. Co. v. Lapolla Industries, Inc., 2015 U.S. App. LEXIS 22552 (5th Cir. Dec. 23, 2015). The homeowners' contractors installed spray polyurethane foam (SPF) insulation as part of a renovation project in the home. Lapolla manufactured the SPF. Shortly after the insulation was installed, the homeowners smelled strong odors and suffered respiratory distress, causing them to leave the home. The homeowners sued the contractor and various subcontractors for negligence and breach of contract. A third party complaint was filed against Lapolla. The homeowners also amended their complaint to assert a products-liability claim against Lapolla. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

New Mexico Adopts Right to Repair Act

April 25, 2023 — William L. Doerler - The Subrogation Strategist
On April 7, 2023, New Mexico’s governor, Michelle Lujan Grisham, signed into law New Mexico’s Right to Repair Act (Act), 2023 N.M. SB 50. The Act’s effective date is July 1, 2023. The Act applies to construction defects in dwellings, i.e., newly constructed single family housing units designed for residential use. The Act applies to not only newly constructed housing units but also to systems and other components and improvements that are part of the housing unit at the time of construction. Pursuant to the Act, except for construction defect claims that involve an immediate threat to the life or safety of persons occupying the dwelling, that render the dwelling uninhabitable or in which the seller, after notice, refused to make a repair pursuant to any applicable express warranty, a purchaser must comply with the provisions of the Act before filing a complaint or pursing an alternative dispute mechanism related to a construction defect in the dwelling. A seller who receives a notice complying with the provisions of the Act must give notice to all construction professionals who may be responsible for the defect. Read the court decision
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Reprinted courtesy of William L. Doerler, White and Williams LLP
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com

New Hampshire Asbestos Abatement Firm Pleads Guilty in Federal Fraud Case

February 02, 2017 — Justin Rice - Engineering News-Record
For the second time in three months, a New England-based asbestos removal company pleaded guilty in federal court to wage and benefit violations. Read the court decision
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Reprinted courtesy of Justin Rice, ENR
Mr. Rice may be contacted at ricej@enr.com

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